Monday, January 4, 2016

AAA predicts 2016 gas prices may be even lower than 2015

How low can gas prices go? No one is quite sure, but AAA thinks we might not be there yet.

AAA
tracks gas prices around the country. In 2015, it reported the average
gas price in the United States was $2.40 per gallon. Now, it is
predicting the average for 2016 will fall somewhere between $2.25 and
$2.45 per gallon.

The price of oil has fallen below $40 per
barrel from more than $100 per barrel as recently as mid-2014. This fall
was due to several factors, including the doubling of oil production in
the United States over the last six years and the increase in
efficiency of cars, which has driven down demand.

CNN Money
estimates the drop in gas prices saved drivers in the United States
about $540 on average in 2015. That is more than $1000 per household
since most households have two drivers.

However, don't bank on
having the same savings in 2016. AAA points out oil is always
susceptible to political crises and other unexpected price shocks.